Buy-Now-Pay-Later (BNPL) platform Splitit Payments [ASX:SPT] and credit card group Visa have been advancing instalment payments for merchants and evaluating possibilities for new products since March 2020.
By the early afternoon, SPT was rising in share price by 8.7% and trading for $0.12 per share.
In the past week, SPT decreased by nearly 14% in its stock value and is down by 22% in the year so far.
Compared with its sector the BNPL stock has bumped down in the share market by 48% which matches its trajectory against the wider market average:
Source: TradingView
Splitit and Visa upgrade their collaboration project
Splitit Payments, known as the only white label instalment solution that allows customers to pay over time with their existing credit on their cards, today announced the signing of a new two-year partnership agreement with Visa.
The new agreement will enable SPT to enhance its instalment solutions further, expanding on ideas and benefits the companies previously agreed upon a year ago.
The next step in this process allows acquirers and merchants to gain access to a BNPL platform option which offers a single point of integration for full credit card instalments.
This works by combining Splitit’s instalments-as-a-service solution with VISA’s Instalment Solutions, allowing a smoother and more convenient process for issuers, acquirers and merchants.
Merchants will be able to offer universally accepted card-attached instalment solutions (included in the pre-existing credit card process) which will be made available through participating acquirers.
VISA’s Instalment Solutions will now be included Splitit’s technology to create a more evolved and universal consumer experience.
The companies have not yet worked out the materiality of the agreement due to there being a variable revenue nature, on which the system operates.
These variable revenues also depend on the value of customer purchases via Splitit’s services.
However, the company does anticipate that its partnership will have a positive impact on the brand’s business development and prospects.
A pilot program for this project is to be launched by the partners by the second half of FY2023.
Splitit CEO and Managing Director Nandan Sheth commented:
‘We are excited to be partnering with Visa to pilot a new instalment solution, which enables Acquirers and Merchants to access the powerful benefits of Visa Instalments coupled with Splitit’s universal credit card acceptance in a single API integration and solution. By providing consumers with an optimised, simplified instalment experience, merchants can enjoy improved sales conversion and increased order size. We look forward to working closely with the team at Visa to launch the solution.’
In other news, Splitit reported that after receiving shareholder approval at the group’s Extraordinary General Meeting (EGM) in April 2021, it has now gone ahead and issued 90,909 unlisted options for the company’s Employee Share Incentive Plan.
These options have gone to each of its non-executive company directors Scott Mahoney and Vanessa Lefebvre Robinson.
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For Money Morning
